Top 3 Earning Reports this Week: Netflix, Tesla, Intel

Almost a quarter of the S&P 500 will report earnings this week, with several big names that could shake up US indices over the coming days.

Netflix

Netflix is due to report its Q4 2023 earnings after the close on Tuesday. Analysts forecast earnings will decline to $2.18, although revenue is expected to rise to $8.9 billion. This would still represent a substantial improvement from the disappointing $0.12 EPS reported in Q4 2022. Commentators have taken an optimistic view, citing Netflix's expanding content library and the success of its lower-priced advertising-supported subscription tier as factors supporting future membership growth and profitability.

Tesla

Tesla, once the world's largest electric vehicle manufacturer by sales, will announce its earnings on Wednesday. It is expected to report earnings of $0.90 on $27.0 billion in sales for the fourth quarter. While vehicle deliveries increased 38% year-on-year in the past quarter, some viewed this as disappointing, given prior guidance of 50% growth. Management has since lowered the 2023 delivery guidance to 1.8 million vehicles. The market will be scrutinising operating margins and any indications of whether aggressive pricing is negatively impacting profitability.

Intel

Intel, a major player in the AI sector, reports on Thursday. Intel was the second-best performer on the DJIA last year but has seen some of the wind taken out of its sales since the start of the new year. Analysts forecast a small EPS decline to $0.30 on essentially flat quarterly revenue of $14.2 billion. However, investors will be hoping to see confirmation that robust demand for AI and PCs is translating into a return to overall sales growth for the company after the recent share price weakness.

Netflix in Wedge?

Netflix's share price is forming a rising wedge, pending downward pressure once the pattern completes above the peak of $503. If the trough at $461 gives way sooner, it could leave a double-top behind, maintaining the bearish thesis towards $400 unless the $445 support holds firm. In case of further upside, the projected target using the trough's depth lies at $517, with an invalidation of the pattern opening the door to $550.

Source: SpreadEx / NFLX

Key Takeaways

Netflix, Tesla and Intel are scheduled to report their earnings this week. Netflix is expected to report on Tuesday, with analysts forecasting earnings to decline slightly but revenue to rise. There are optimistic expectations due to Netflix's content library and new subscription tiers. Tesla will announce earnings on Wednesday, and while vehicle deliveries grew 38% year-on-year, there are concerns about pricing impacting profitability. Intel, a major player in AI, will report on Thursday. While Intel performed well last year, there are hopes that the recent share price weakness will translate to sales growth.